Correlation Between Yingde Greatchem and Guotai Epoint
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Guotai Epoint Software, you can compare the effects of market volatilities on Yingde Greatchem and Guotai Epoint and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yingde Greatchem with a short position of Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Guotai Epoint.
Diversification Opportunities for Yingde Greatchem and Guotai Epoint
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yingde and Guotai is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software and Yingde Greatchem is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yingde Greatchem Chemicals are associated (or correlated) with Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Guotai Epoint go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Guotai Epoint
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.88 times more return on investment than Guotai Epoint. However, Yingde Greatchem Chemicals is 1.14 times less risky than Guotai Epoint. It trades about -0.03 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about -0.03 per unit of risk. If you would invest 3,850 in Yingde Greatchem Chemicals on October 12, 2024 and sell it today you would lose (1,539) from holding Yingde Greatchem Chemicals or give up 39.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.04% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Guotai Epoint Software
Performance |
| Timeline |
| Yingde Greatchem Che |
| Guotai Epoint Software |
Yingde Greatchem and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Guotai Epoint
The main advantage of trading using opposite Yingde Greatchem and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Guotai Epoint can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Yingde Greatchem vs. HaiXin Foods Co | Yingde Greatchem vs. Union Semiconductor Co | Yingde Greatchem vs. Qingdao Foods Co | Yingde Greatchem vs. Shantou Wanshun Package |
| Guotai Epoint vs. Yingde Greatchem Chemicals | Guotai Epoint vs. Bus Online Co | Guotai Epoint vs. Dymatic Chemicals | Guotai Epoint vs. Porton Fine Chemicals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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